1. Executive Summary
1.1 Introduction
Peabody enters the back half of 2025 with a balanced “cash, and optionality” profile. U.S. thermal, anchored by the PRB, delivers predictable cash flow under multi-year contracts. Australian operations provide leverage to seaborne price swings, while Centurion (North Goonyella) is on track to add high-margin HCC starting in 2026.
The potential acquisition of Anglo American’s met-coal assets is a genuine swing factor, offering scale if terms are favorable, but with limited downside if it is dropped. In addition, a low-cost PRB rare earths evaluation provides a free call option.
With a clean balance sheet, including net cash of roughly $1.58 per share, and a stock still trading near book value, the setup offers steady income, upside from met, and a valuation that understates the growth ahead.